Correlation Between United Overseas and Turkiye Garanti
Can any of the company-specific risk be diversified away by investing in both United Overseas and Turkiye Garanti at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining United Overseas and Turkiye Garanti into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between United Overseas Bank and Turkiye Garanti Bankasi, you can compare the effects of market volatilities on United Overseas and Turkiye Garanti and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in United Overseas with a short position of Turkiye Garanti. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Overseas and Turkiye Garanti.
Diversification Opportunities for United Overseas and Turkiye Garanti
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between United and Turkiye is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding United Overseas Bank and Turkiye Garanti Bankasi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Turkiye Garanti Bankasi and United Overseas is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on United Overseas Bank are associated (or correlated) with Turkiye Garanti. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Turkiye Garanti Bankasi has no effect on the direction of United Overseas i.e., United Overseas and Turkiye Garanti go up and down completely randomly.
Pair Corralation between United Overseas and Turkiye Garanti
Assuming the 90 days horizon United Overseas Bank is expected to generate 0.64 times more return on investment than Turkiye Garanti. However, United Overseas Bank is 1.55 times less risky than Turkiye Garanti. It trades about 0.25 of its potential returns per unit of risk. Turkiye Garanti Bankasi is currently generating about 0.05 per unit of risk. If you would invest 4,916 in United Overseas Bank on August 28, 2024 and sell it today you would earn a total of 485.00 from holding United Overseas Bank or generate 9.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
United Overseas Bank vs. Turkiye Garanti Bankasi
Performance |
| Timeline |
| United Overseas Bank |
| Turkiye Garanti Bankasi |
United Overseas and Turkiye Garanti Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Overseas and Turkiye Garanti
The main advantage of trading using opposite United Overseas and Turkiye Garanti positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Overseas position performs unexpectedly, Turkiye Garanti can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Turkiye Garanti will offset losses from the drop in Turkiye Garanti's long position.| United Overseas vs. KBC Groep NV | United Overseas vs. DBS Group Holdings | United Overseas vs. HomeStreet | United Overseas vs. Bank of Hawaii |
| Turkiye Garanti vs. Kasikornbank Public Co | Turkiye Garanti vs. Hang Seng Bank | Turkiye Garanti vs. PT Bank Rakyat | Turkiye Garanti vs. Delhi Bank Corp |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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